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Data Difficulties in Labor Economics

In: Fifty Years of Economic Measurement: The Jubilee of the Conference on Research in Income and Wealth

  • Daniel S. Hamermesh

This essay sets out a framework for evaluating empirical work in terms of the ability of the data to provide adequate parameter estimates and hypothesis tests about the true underlying structure. Problems of aggregation, representativeness and structural change are discussed in detail. These criteria are applied to evaluate studies of labor supply, labor demand, local labor markets and union goals. Empirical work in labor supply has made the greatest strides because of the appropriateness of the data to answer questions of interest. Studies in the other areas have not made so much progress and will not until the same resources are devoted to collecting longitudinal microeconomic data on firms as have been spent on collecting longitudinal household data.

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This chapter was published in:
  • Ernst R. Berndt & Jack E. Triplett, 1991. "Fifty Years of Economic Measurement: The Jubilee of the Conference on Research in Income and Wealth," NBER Books, National Bureau of Economic Research, Inc, number bern91-1, March.
  • This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 5979.
    Handle: RePEc:nbr:nberch:5979
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    National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.

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    1. Grant, James H & Hamermesh, Daniel S, 1981. "Labor Market Competition among Youths, White Women and Others," The Review of Economics and Statistics, MIT Press, vol. 63(3), pages 354-60, August.
    2. Grossman, Jean Baldwin, 1982. "The Substitutability of Natives and Immigrants in Production," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 596-603, November.
    3. Katharine G. Abraham & Henry S. Farber, 1986. "Job Duration, Seniority, and Earnings," NBER Working Papers 1819, National Bureau of Economic Research, Inc.
    4. Thomas J. Sargent, 1978. "Estimation of dynamic labor demand schedules under rational expectations," Staff Report 27, Federal Reserve Bank of Minneapolis.
    5. McElroy, Marjorie B, 1987. "Additive General Error Models for Production, Cost, and Derived Demand or Share Systems," Journal of Political Economy, University of Chicago Press, vol. 95(4), pages 737-57, August.
    6. Steven G. Allen, 1985. "Union Work Rules and Efficiency in the Building Trades," NBER Working Papers 1733, National Bureau of Economic Research, Inc.
    7. Harry J. Holzer, 1986. "Informal Job Search and Black Youth Unemployment," NBER Working Papers 1860, National Bureau of Economic Research, Inc.
    8. Dertouzos, James N & Pencavel, John H, 1981. "Wage and Employment Determination under Trade Unionism: The International Typographical Union," Journal of Political Economy, University of Chicago Press, vol. 89(6), pages 1162-81, December.
    9. George J. Borjas, 1986. "The Demographic Determinants of the Demand for Black Labor," NBER Chapters, in: The Black Youth Employment Crisis, pages 191-232 National Bureau of Economic Research, Inc.
    10. Nadiri, M Ishaq & Rosen, Sherwin, 1969. "Interrelated Factor Demand Functions," American Economic Review, American Economic Association, vol. 59(4), pages 457-71, Part I Se.
    11. Sosin, Kim H & Fairchild, Loretta G, 1984. "Nonhomotheticity and Technological Bias in Production," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 44-50, February.
    12. Dunne, T. & Roberts, M.J. & Samuelson L., 1988. "Plant Turnover And Gross Employment Flows In The U.S. Manufacturing Sector," Papers 9-87-7, Pennsylvania State - Department of Economics.
    13. John H. Pencavel, 1984. "The Tradeoff Between Wages and Employment in Trade Union Objectives," The Quarterly Journal of Economics, Oxford University Press, vol. 99(2), pages 215-231.
    14. Osberg, Lars & Apostle, Richard & Clairmont, Don, 1986. "The Incidence and Duration of Individual Unemployment: Supply Side o r Demand Side?," Cambridge Journal of Economics, Oxford University Press, vol. 10(1), pages 13-33, March.
    15. Alan Carruth & Andrew Oswald, 1984. "Miners' Wages in Post-War Britain: An Application of a Model of Trade Union Behavior," Working Papers 558, Princeton University, Department of Economics, Industrial Relations Section..
    16. Eberts, Randall W & Stone, Joe A, 1986. "On the Contract Curve: A Test of Alternative Models of Collective Bargaining," Journal of Labor Economics, University of Chicago Press, vol. 4(1), pages 66-81, January.
    17. MaCurdy, Thomas E, 1981. "An Empirical Model of Labor Supply in a Life-Cycle Setting," Journal of Political Economy, University of Chicago Press, vol. 89(6), pages 1059-85, December.
    18. Nickell, Stephen, 1979. "Unemployment and the structure of labor costs," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 11(1), pages 187-222, January.
    19. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-93, March.
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